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ICMA Urges Congress to Maintain Tax Status for Local Governments

ICMA joined with the National League of Cities, the National Association of Counties, the U.S. Conference of Mayors, the National Conference of State Legislatures, the National Governors Association and the Council of State Governments in urging Congress to maintain both the tax exemption for municipal bond interest and the deductibility of state and local taxes in any comprehensive federal tax reform package. A letter with supporting documentation was sent to Congress in advance of planned tax reform legislation, which is high on the new administration's legislative agenda. 

The letter pointed out that, "These essential components of the tax code support vital investments in infrastructure, public safety, and education; encourage economic growth; and provide states and local governments with financial flexibility to meet our residents’ needs."

ICMA members are encouraged to share the letter with their congressional representatives and media contacts. By providing real-life examples of how your local government has used Community Development Block Grant (CDBG) funds, congressional representatives can see tangible projects that benefit their districts. 


Letter Urging Congress to Preserve State and Local Tax Deduction (PDF, 1,565 KB)

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National Association of Counties, DC

National League of Cities, DC

U.S. Conference of US Conference of Mayors, DC

Council of State Governments, KY

National Conference of State Legislatures, CO

National Governors Association; Washington, DC